Christian Streiff, Peugeot's former CEO, was removed from the executive's seat and replaced with Philippe Varin, his term to start June 1.
Peugeot explained the decision in a statement, revealing a $460 million net loss last month and the likelihood of operating at a loss until at least 2010. Varin is perceived by the board as a fresh force to help push Peugeot in the right direction, reports Reuters.
"The board unanimously judged that the exceptional difficulties faced by the auto industry imposed a change of management...I am convinced that under Philippe Varin's leadership, the PSA Peugeot Citroen group will be able ... to reveal all its potential," said Peugeot Chairman Thierry Peugeot in a statement.
In the period between Streiff's removal and the start of Varin's term as CEO, Roland Vardanega will captain the Peugeot ship. Varin was previously a 25-year veteran of the aluminum industry.